Bloomberg Daybreak: July 12, 2022 - Hour 2 (Radio)

again indoors. Plus, funeral services were held today for former Japanese per Minister Rombe. I'm Michael bar More Ahead, I'm time Stash Howard. Sports matchers are pitched the Mets to a big win in Atlanta, and pied Delonso will be

in next week's home run Dirt. That's all trading ahead on Bloomberg Daybreak on Bloomberg eleven three, on New York, Bloomberg one, Washington, d C, Bloomberg one O six one, Boston, Bloomberg nine sixties and Francisco Syrius XM one nine team, and around the world on Bloomberg Radio dot com and via the Bloomberg Business App. Good morning, I'm Nathan Hagar and I'm Karen. Moscow and US futures are lower this morning.

We're coming up to six oh one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day. On Bloomberg, U S and P futures down about twenty eight points down, futures down two twenty three and NASDAG features down two. The DAGs in Germany's down eight tens of upper cent in the ten year treasury ye thirty seconds, he'll two point nine one percent, and they yield on the two year two point nine percent.

Nathan Well Karen futures are adding to yesterday's losses, which saw all three major indexes fall. The hardest hit was the NASTAC, which dropped two and a quarter percent. Still, Alan zaffron Co, CEO at I e Q Capital says

growth stocks may be the place to invest. We are looking forward at a slower growing economy, given what's happening with the FED, given what's happened with a more heightened inflationary environment, and so it is a setup for growth stocks to outperform value stocks looking forward for quite some time. I e Q Capital's Alan's afer and says the upcoming earning season will be key for the markets well, Nathan.

The Wall streets sell off spread to Asia overnight. Both Japan's and NK and Hong Kong's Hang Sang Index stramre than one percent. I'm making the recap from Bloomberg Daybreak, Asia anchor Brian Curtis in Hong Kong. Asian stocks fell on concerns over the economic outlook, high inflation, and China's issues with COVID. The text actors struggled, sparking weakness in Japan, Hong Kong, and China. The dollar pushed higher, up near the levels that we saw in the panic over COVID.

The euro has edged closer to parody, with the greenback sapped by Europe's energy crisis and fears of recession. Treasuries gained, taking the tenure yield well below three percent. Bonds also rallied in Australia. You know, Hong Kong, Brian Curtis, Bloomberg Daybreak, Brian, thank you. Oil is moving lower this morning. West Texas Intermediates down two point three percent to a hundred one dollar sixties extensive barrel. A COVID resurgence in China is

adding to concerns about a global economic slowdown. Fatty Barole, executive director at the International Energy Agency, says the worst of the energy crisis maybe ahead. The world has never witnessed such a major energy crisis. It is interwoven by many factors, including the geopolitics, and I believe we might not have seen the worst of it yet. I e A Executive director Fatty Barol says this winter in Europe

will be quote very very difficult. Well making investors are closely watching for the release of June's Consumer Price Index tomorrow. The White House is keeping an eye on it. You. Press Secretary Karine john Pierre said the inflation data will be highly elevated, but she also notes it's backward looking. June's CPI data is already out of date because energy prices have come down substantially this month and are expected

to fall further. White House smokes showman Karne John Pierre says fooding gas prices continue to be impacted by the war in Ukraine. Economist surveyed by Bloomberg expect June prices to jump eight point eight percent compared to last year. That would be a fresh forty year high. We're also continuing to follow the saga between Elon Musk and Twitter, Karen after shares fell more than eleven percent yesterday. Let's get the latest live from Bloomberg's Rinity Young. Good morning, Grenita,

Good morning Nathan. Twitter lawyers are calling Elon Musk's termination of his forty four billion dollar deal to buy the company invalid and wrongful. They wrote it in a letter to his attorneys, and it's a preliminary step in the

legal battle over the deal now. Musk agreed to buy Twitter for fifty four dollars and twenty cents a share, but he terminated the agreement because he believes Twitter misrepresented user data, claiming the number of spambots on the platform is much higher than the five percent the company has disclosed. Bloomberg sources say Twitter aims to file suit early this week, and the agreement specifies in any legal dispute over the deal must be heard in Delaware, Live in New York.

I'm we need a Young Bloomberg day break. All right, we need to thank you well. One other note on the world's richest man this morning, Elon must says Donald Trump should quote sail into the sunset and forget about running for president again. In a series of tweets, must claim that Florida Governor Ronde Santis would easily defeat President Biden. He also told this one hundred million followers that there was too much drama when former President Trump was in office.

Speaking of drama, Karen Testimony on last year's attack at the US Capital rolls on in Washington and up next the House January six committee will focus on the role of extremists in the insurrection, Bloomberg said, Baxter has the story.

Committee member Jamie Raskin says it will continue building on the case that Donald Trump had a hand and trying to overthrow the results of the election and led to the advance that day on January six, Raskin says, you will focus on what's become known as Team Crazy, a group of people around Trump, Sidney Pale, Rudy Giuliani among them. Raskin says one of the meetings was unlike anything in

American history reap now. The committee has also announced postponement a Thursday's hearing because it is getting so much new information on White House ties in San Francisco. I'm at Baxter Bloomberg Daybreak and thank you in corporate news this morning, San Francisco based Gap has fired at CEO Sonya San was dismissed after two and a half years on the job, and we get the story from Bloomberg Shirley Pellett. The apparel company is struggling to leave operational challenges behind it.

Chairman Bob Martin is taking over immediately as CEO on an interim basis. GAP shares aren't down fifty percent this year, compared with a thirty percent dropped for the S and P five retailing index. Single took over in early twenty right before Covid royaled the business and demand. Prior to that, she was in charge of the company's old Navy brand in New York. Charlie Pellett Bloomberg Daybreak. All right, Charlie,

thank you, and job cuts are coming at Microsoft. The layoffs effect less than one percent of the workforce and span a variety of groups in it in consulting and customer and partner solutions. Microsoft says the cuts were not spurred by economic factors. Back in May, the company also slowed hiring it its windows and office groups. SMP futures down twenty seven points. Nasdaq futures down seventy two straight ahead your latest local headlines in the check of sports.

This is Bloomberg six oh seven on Wall Street where at sixty nine degrees in Central Park. Problems headed to New York Airport. There's an accidents southbound Rouge one at Third Avenue. Details coming up in traffic. First Michael Barr with what else is going on in New York and around the world. New concerns about COVID. Michael, that is correct, Nathan.

The Department of Health is continuing to urge New York City residents to wear masks in all public indoor settings and in crowded areas outdoors because of an uptick in COVID. It comes as the latest mcron variant B A point five has become the dominant strain in the US. This New Yorker says people got lacks about masking. I think the city is the government's gonna have a hard time getting people back into nest. Meanwhile, about two out of

three people in the US are fully vaccinated. Harvard Medical School professor Dr John Brownstein says the evolution of variants unresponsive to immunity from previous infections means we are likely going to have to give up on the idea of her community. You see this virus evolved quicker and quicker, and we'll probably see another variant in the fall. So the main question really is can divert really serious outcomes like death and hospitalizations. Epidemiologist Dr John Brownstein is also

the Chief Innovation Officer at Boston Children's Hospital. Police in New York City are looking for a man they say is targeting homeless people in a string of stabbing attacks. The latest victim a twenty eight year old woman attacked early yesterday. Police say the same man can be seen on surveillance cameras in all three locations where homeless people

have been stabbed in the last week. The first stabbing was on July thirty four year old man resting on a bench was stabbed and later died from his injuries. Three days later, a fifty nine year old homeless man was stabbed in the abdomen. Japanese people have bid their final goodbye the former Prime minister Shinzo abe. Family funeral was held at the Temple days after his assassination that shocked the nation. Abbe, the country's longest serving prime minister,

was gunned down Friday during a campaign speech. The first image from NASA's News Space Telescope is the deepest view of the universe ever captured. The image from the James Webb Space Telescope was unveiled at the White House President Joe Biden. Light from the Oldest Galaxies, the oldest documented light in the history of the universe, from over thirteen billion let me say it again, thirteen billion years ago. Today, four more galactic shots will be released from the telescope.

Global News twenty four hours a day on air and on Baloomberg Quick Take, powered by more than journalists and analysts and over a hundred twenty countries. Michael Barr and this is Bloomberg. Nay, such a cool picture. To thank you, Michael. Almost six ten on Wall Street. Let's check in with John Stanshar for the Bloomberg Sports update. All right, Nathan, the Mets pain max sers are forty three million dollars a year. They're doing that for games like last night

in Atlanta. The Mets lead over the Braves once ten and a half games at Dwindle to one and a half, thanks to Atlanta's twenty nine and eight records. Since June one. They've got the best offense of the National League, but Scherzer shut them down, allowed only one hit over the first six and as he struck out nine shots are in. The Mets beat the Braves four to one, especially this time of year. Uh. You know, they're a great team over there, and you want to come out there and

play your best baseball. Uh. And you know when you you can collect wins against them, and you know, it's kind of a measuring stick win and you know it's it's a good feeling. So um. You know, but like you said, we're in when getting game here in July, we gotta come out there and played, you know, great months of Jove. It's got a home for Luiski or Mayo rb I double from Pete Alonso. Pete will go for the home run derby three. Pete, he's never not

one a winner the last two the Braves. Ronald the Cuna Jr. Will be one of his competitors next one day in l a lest of the Field. Not yet No Yankees Tonight host the Cincinnati Reds as the British Open gets ready to tee off Thursday. St Andrew's so much talk about the new Live tour word that the Anti Trust Division of the Justice Department is investigating whether the PGA Tour used anti competitive practices against the Live Tour. The PGA says it expected this and is confident there

was no wrongdoing. The guys who jumped to Live Dustin Johnson Bryson, the Shambo Brooks captor. They are playing the Open Championship, as is Tiger Woods, John Stashanward, Bloomberg Sports name, thank you, John SMP futures down twenty two point, staff features down, nastac features down forty five. The dollar continuing to strengthen this morning. The euro hit parody against the dollar earlier this morning. Look at the impact what it means for markets. Jane Foley, head of f X strat

just at Robbo Bank joins us. Next. This is Bloomberg Bloomberg eleven three oh weather partly Sunday today, chance for afternoon showers and storms. Some could be strong going up to near ninety sunshine near ninety tomorrow. Right now sixty nine degrees in Central Park. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, The Bloomberg Business Outland at Bloomberg Quick tape. He's a Bloomberg

business flash and I'm Karen Moscow. We have some headlines crossing the Bloomberg Peloton Interactive to stop building its bikes and treadmills at its own factories and rely solely on partners for manufacturing, marking one of the most dramatic steps

he had to simplify its operations and reduce costs. Shares her up in early training about eight tenths of a percent, also watching shares of PepsiCo, raising his outlook for the second time and as many quarters, saying it expects revenue to grow ten percent this year as consumer demand remains resilient. Those shares are up nine tenths of a percent this morning. Futures this morning are falling, with SNP futures down about twenty one points and down futures down a hundred eighty eight.

Nastack features down forty four, the decks in Germany down seven tenths of up percent. The tend your treasury of twenty thirty seconds yield two point nine one percent. That yield on the two year is at three percent. Nieme X screwed oil down two point six percent on two dollars seventy three cents at a hundred one dollars thirty six cents of barrel. Comex school. This it will change

is seventeen thirty two sixty announced. Now. The euro is at one point zero zero one six against the dollar, British found one point one eight four one and the yen one thirty six point eight nine Bitcoin this morning lower down three point six percent at nineteen thousand, six hundred seventy dollars. That's a Bloomberg business flash. Now here's Michael bar with more on what's going on around the world.

Michael Karen, thank you very much. Another public hearing today behind the Congressional committee investigating the deadly January sixth insurrection. Is hearing will focus on the involvement of white supremacists hate groups in the attack on the Capitol and feature testimony by former White House Consul Pat Saboloni, whom investigators say collaborates former White House aid Cassidy Hutchinson. People in Japan have bid their final goodbye to former Prime Minister

Shinzo Abe. Family funeral was held at the Temple days after his assassination that shocked the nation. In baseball, the Mets one the red sox, A's and giants lost. Global news twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty hundred journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg. Nathan all right, Michael, thank you. It is six nineteen on Wall Street Live from the

Bloomberg Interactive Brokers studios. This is Bloomberg daybreaking as we continue to see stocks sell off this morning. A lot of this story has been the flights of safety. Bonds are on the rise, and the dollar continues to strengthen. Joining us more for more on the currency picture this morning, where and by Jane Foley, Executive director, head of FX Strategy at Robbo Bank. Jane, good morning. I know you've probably been watching very closely for euro dollar parody. We

did reach it moments ago. It looks like the euro is starting to bounce back just a bit against the dollar. What does euro dollar parody mean for this market? Well, it's a big psychological level and probably a big level for the options market, but I think for the ECB also clearly, if you have a weeker year, then that's not particularly great for your inflation, particularly when you're importing a lot of energy, and of course energy is what

this story is all about. Yesterday, as you'll be aware, we had the taking down of the nord Stream wine at one pipeline for cleaning, for maintenance, and politicians and speculators alike. Oh, I mean that Putin won't turn that pipeline back on a scheduled ininten days time, or at least if he does, then maybe it flows through. It will be lessons and then we'll have less gas in

Europe for the winter, and then we'll have recessions. So really whether or not we can drop through parity very much depends on that decision that pipeline and what happens in ten days time with with Putin and and gas supply. So there is this risk of recession a bigger concern for the Eurozone than it is for the dollar, and your for the US and your view, yes, I think it is when we have been forecasting recession over this winter, for for the for the eurosin for it for a while,

and I think perhaps more commentators have seen this. But it's very much dependent on energy, because if you got back just a couple of weeks ago we had the German Economy Minister warning that we could see rationing in in Germany and that would be amongst some of the big industrialized, hungry energy hungry UH companies, and that would be obviously to protect the gas supplies or the energy

supplies for for consumers. And clearly if you had someone German, Germany's big energy being rationed in terms of energy, that's what would bring out slower growth and the recession risk. And you can translate that also to Italy, another big industrialized economy here here in Europe, and recession then would would highlight, as it always does in your highlight the differences between the Eurozone countries and focus on on the

highly debted nations. And then we have more conversation around fragmentation and also how big a window does the ECB have too high interest rates? If if if there is this risk of recession going into the winter. So that's all combined into a negative scenario for for the euro at a time when safe haven flow is really supporting the dollar. Well, what are the options for the ECB at this point? Could we see intervention sooner to try

to head off some of these concerns? Well, we're not going to see ext intervention, but we could, we could have intervention to try and store up confidence. And and this is this is where it gets very, very tricky for the ECB, because we have this higher inflation print. We know that they want to eve into this era of tighter monetary policy. They've already signaled that they'll be hiking interest rates twenty five basis points this month, maybe maybe to a fifty basis points in in September. But

at the same time they're worried about fagmentation. They want to hold together market confidence and and that involves some degree of protection for these highly indebted countries, but in a way that goes against the grain. I mean, it's a bit about saying, well, yes, you know, we want to tighten monetary policy, but nobody can fail. And that is perhaps a little bit counterintuitive, and certainly it means it's a very tough line for the ECB to walk

in terms of getting this policy right. And because of the complications for the ECB policy, again, you know, the market is looking at this and worried about this, and this is all weighing on the Euro. Only about thirty seconds left here, Jane but does a stronger dollar effect anything for the Fed? Well, it does. I mean a stronger policy is part of the mode a tree tightening policy. So you could say the more the dollar stensons, the less they already have to do in terms of actual

policy measures. You could argue that a stronger dollars does some of the heavy lifting already, so orders play into how much the market is likely to forecast for interest rate hikes during the cycle. Thanks for this, Jane, great having you on with us this morning. Jane Folly, executive director, head of FX Strategy at Robo Bank, where a lot of the story this morning is euro dollar parody. Right now, the euro is trading at one point zero zero one

seven against the dollar. We did hit parody between the year on the dollar earlier this morning. SMP futures are down nineteen points. Now futures are down two Nasdaq futures are lower by forty points, and we continue to watch inversion between two year and ten year yields. Right now, the tenure is up thirty seconds, with the yield almost two point nine one almost two point nine two percent. I should say it is at two point nine two uh. The two year yield is at three point zero zero percent.

This is Bloomberg Bloomberg eleven three oh weather partly sunny, maybe some strong storms later this afternoon on our way ups in your ninety degrees high, your nineties sunshine Tomorrow could see an afternoon shower Thursday, right now seventy in Central Park. Broadcasting live from the Bloomberg Interactive Broker Studio

in New York. Bloomberg E Loving Freedom to Washington, d C, Bloomberg N one to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixt to the country Sirius XM Channel one nineteen and around the globe the Bloomberg Business and Bloomberg Radio dot com. This is Bloomberg Daybreak six thirty on Wall Street. Good morning, I'm Nathan Hagar and I'm Karen Moscow. We are just about three hours away from the open of US trading. Kind to the five things you need to know to start your day.

To you buy Interacted Brokers. Interactive Brokers charges Martin loan rates from two point eight percent to three point eight percent, rates subject to change. Learn more at ibk R dot com. Slash Compare First U s futures are lower, adding to yesterday's losses, which saw all three major indexes slump. Mike vocal Sang, chief investment officer at cap Trust, says, at this point, it's unclear how markets are pricing in a recession. This recession has been so anticipated that it's far to

believe the market hasn't discounted most of it. Maybe the surprise will be that it's that it's really really a negative and difficult and deep recession. We don't think so. It also could be that we don't really hit a recession. We're like a stone skipping off the top of the pond and moving on and back up again. That's the question I think, and I think we're going to know a lot more about that as we had into earning season later this week and then the next couple of weeks.

Mike vocals Sang a capped Trust as forward guidance from companies will be watched closely over the next few weeks. Well. The Wall Street sell off spreading overseas. Karen Japan's NIEK and Hong Kong's Hang Sang Index both felt more than one percent overnight. I made concerns about inflation and COVID and China oil is moving lower to West Texas Intermediates down two and a half percent at a hundred one

dollars forty six cents of barrel. Investors are looking ahead to the relays of June's Consumer price index tomorrow, Nathan, and so is the White House Press Press Secretary Karine Jean Pierre says prices continue to be impacted by the war in Ukraine. We got here with the with the increase of gas prices and food prices because of Mr. Putin's war in Ukraine. White House sposum and Karine Jean Pierre says the latest inflation data will be elevated, but

also notes it's backward looking now. We're still following the saga between Elon Musk and Twitter this morning, Karen. After showers fell eleven percent yesterday, Bloomberg's Rnita Young joins us Live. Ranita, Good morning, Nathan. Twitter lawyers are calling Elon Musk's termination of his forty four billion dollar deal to buy the company invalid and wrongful. They wrote it in a letter to his attorneys, and it's a preliminary step in the

legal battle over the deal. Musk agreed to buy Twitter for fifty four dollars in twenty cents a share, but he terminated the agreement, claiming the number of spambots on the platform is much higher than the company disclosed. Bloomberg sources say Twitter aims to file suit early this week. Live in New York, I'm rened a young Bloomberg daybreak. All right, we need to thank you and stitting with

corporate news. Job cuts are coming at Microsoft. Layoffs are affecting less than one percent of its workforce, and the company says cuts were not spurred by economic factors. That's the five things that you need to know to start your day, brought to you by Interactive Brokers. Straight ahead, your latest local headlines, to check a sports and this is Bloomberg. Thank you, Karen. Six Wall Street, sixty nine degrees in Central Park. Another accident southound west Side Highway

at seventy second. We'll tell you more in traffic First, Michael Barr on what else is going on in New York and around the world. Big day again on Capitol Hill today, Michael, Yes, it is Nathan. The January six Committee is preparing to highlight how violent extremist groups answered what one lawmaker says was Donald Trump's siren call to come to Washington and attack the capitol. The panelists said to convene today. The committee is probing whether extremist groups

coordinated with White House allies ahead of the violence. Police in New York City are looking for a man they say stabbed twenty eight year old homeless woman early Monday. They say the suspense is behind similar attacks in the past week, including one that was fatal. Police say they have video and photos of the same men at all

three locations. The latest omicron variant B A point five has become the dominant strain in the U S. As COVID cases increase, cities like New York and Los Angeles are asking people to mask up indoors and in crowded areas. This New Yorker says, though masking is not enough to avoid COVID, people should remember even more important as washing your hands. That's actually that's actually as important, if not

more important, than the masking. Health officials across the nation say the US is still averaging about a hundred thousand cases a day. A family funeral was held today for Japan's former Prime Minister Shinzo Abe. Modicaid including a her slowly drove by a fact crowd to the funeral. This man was among the crowd of mourners. Mr is one of the greatest uh prime minister in the Japanese history, and a lot of people look up to him, a lot of people, and we're so sad that we lost

in only as a widow. Other close family members and senior party leaders, including Prime Minister Fumio Kashita, attended the service. The chief Judge of New York's Court of Appeals says she will step down after more than six years residing at the state's highest court. Judge Janet D. Ferriori, who was sixty six, says she will leave at the end of August and move on to the next chapter of

her professional life. There's a shake up in the lead role with the Broadway show Funny Girl Show, says actress Liam Michelle will take over as Fanny Bryce in early September after Benie Feldstein's abrupt announcement that she would be leaving the role earlier than expected. Feldstein on Instagram says that a dream run as Brice would end on July

one instead of late September. Global News twenty four hours a day on air, end on Bloomberg Quick Take powered by more than twenty seven hundred journalists analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan. Alright, Michael, thank you. Almost six thirty six on Wall Street. John stash Hour has the Bloombridge Sports Update. All right, Nathan.

The Nets went down to Atlanta well aware that fifteen of their last seventy six games are against the team that's not only defending World Series CHAMCE, but the hottest team in MLB nine and eight since June one, met still in first place with their lead over the on rushing Braves was just a game and a half, smallest since mid April. Thankfully for the series opener. The Mets add Max shirts are on the map. Pitch seven is allowed only one run, three hits struck out nine. Mets

beat the Braves four to one. S shows are two starts since missing seven weeks, and he's only allowed one run. He was asked the advice he gave to his younger teammates playoff to John, you know, I mean you get a drawn playoff and don't be don't don't be a shy away from it, bringing on this is what you play the game for. You want to be any situations. You want to be facing the best teams in the league. You want to be in races. You gotta rise to the occasion and match it. Um. So they have a uh,

you know, atmosphere like this tonight. Uh playing in this type of environment, it's only good to you know, continue playing this and uh, you know, and feed off. And Peter Alonzo wanted four Mets name to play next week's All Star Game in l a and Alonso and ounce Hill also be in the home run Dury next Monday. He's won the last two Yankees only once this season, have lost three games in a row. Off the back to back Blane leads in Boston. The Yanks home tonight

to play the Cincinnati Reds. The NBA expected to make official that the play in tourney that's been used the last two seasons will become a permanent part of the NBA postseason. Four teams in each conference vying for those last two spots for the first map. Then for Broncos have new owners. It was revealed that part of the new ownership group from a Nashville security advisor, Conda Lisa Runs, John stash Awart bloom Bird Sports Movement. Al right, John,

thank you, six on Wall Street Time. Now to take a look at stock, some of the names moving in the pre market, lots going on Bloomberg Radio, on TV Markets correspondent Creety GOOFDA. Especially for some corporate names. Where you want to start, I mean, let's start with Gap here because this is a big one UM that I think is going to be moving the index. That comes into a major theme. Remember, retailers broadly are struggling. Consumer

sentiment broadly is low. So Gap actually came out and they fired their CEO forget this, failing to rescue the struggling retailer. This is important as we talked about rising costs UM and a lot of these retailers having to give away essentially a lot of their merchandise, really putting a lot of them more on the clearance racks, which a lot more sales just to get rid of some of that inventory, um, even if it's shipping them across

locations once again, just to get rid of them. What that does, though, is in addition to decreasing the inventory, it also hurts their bottom line. So it is kind of a double edged sword there. Nevertheless, it didn't quite work out for GAP. GAP in that firing um also moved lower. They also, by the way, talked about their net sales and said that Nathan, I'm just gonna read this too because I don't want to get these numbers down wrong. Their second quarter net sales are down about

high single digit range. So to see that kind of drop in the second quarter net sales is a pretty big deal. GPS is your ticker for GAP. It's down about six percent this morning, Nathan. But we should also talk about Peloton, another major company story. P t O n is your ticker. Shares are moving lower. Peloton is stopping their in house bike production as part of their big turnaround. Now this is a really big deal because as we talked about Peloton, just all of the issues

that it's had. It wasn't too long ago that we saw the commercial and and the kind of legal battle there um that that has been having to deal with. But remember this was a major pandemic trade. A lot of people were exercising at home. A lot of people said, well, Peloton buying Pelton shares, it's a no brainer. Until you saw this complete reversal in the stock price. Nevertheless, that

move continues down one point four percent. In the environment where you have consumers struggling broadly and retailer struggling broadly, pelotons are still seen as a luxury product. So if you're talking about recession, if you're talking about inflation, if you do you really want to spend your money on a peloton. At least that's the fear driving those shares

right now and driving their turnaround plans. So see them stop that in house productions really speaks to the fact that there's a little bit of pain in the cost story there, and just speaking about real quickly in terms of costs. You just got earnings from PepsiCo, and those look pretty good. They do look pretty good. And this is a good thing to keep in mind because PepsiCo is not just the maker of pepsi obviously, but they

make their massive snack brand. They're a massive food brand as well, and remember there's that really fun ratio of snacks versus drinks uh during during the pandemic. But actually race their outlook for the second time this year saying they're expecting their revenue to grow ten percent. They're actually saying consumer demand remains Brazilian. Remember how much are you spending? Are you spending as much on a peloton? Are you spending as much on snacks and drinks there? And that's

why they call it a staples versus discretionary. Thank you creative Bloomberg Radio TV Markets correspondent ready cooped up with us this morning on a day where it looks like we're gonna see more losses for stocks. SMP futures down twenty four point, STOUT futures down two seventeen, NASTAC futures lower by fifty five points ten. Your treasury yield two point yield on the two year three point zero one.

This is Bloomberg Bloomberg eleven three oh weather. Could see some strong thunderstorms today as we had up near ninety degrees, will be near nine tomorrow under sunshine camera at an afternoon shower by Thursday. Right now seventy one in Central Park Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quicktake. This is a Bloomberg Business flash and

I'm kmerin Moscow. Futures are lower this morning. We go to the first word breaking news dance for today's morning call, and here's Bill Maloney, Bill morning, and good morning, Karen. That's right. US futures are in the red right now, a deaf You just down two nine points. Subs dropped

twenty three one. That is that futures are off by forty four the US ten year old at two point nine two percent, Gold is little changed, Oil trading lower, and Bitcoin is under pressure, falling three point six percent. Japan dropped one point eight percent overnight, while European markets are also in the red this morning and back in the US, nothing to report on the economic front after

about US to night. It was reported that Bill Ackman will wind down his back after not finding a target company and regarding earnings this morning, Pepsi boosted its outlook. In other news, Goldman Sacks ditched its bullish copper stands, and Peloton was stopped building its bikes and treadmills at

its own factories. Wrapping things up. Union Pacific was cut to the neutral at JP Morgan Americans Press cut the equat Morgan Stanley and in video and Andy Price targets were cut over at key Bank Live from the first breaking new statscom Bill Maloney, Karen, all right, Bill, thank you, And just a quick check of those shares this morning. You mentioned Peloton down one point to were sent in

early trading. PepsiCo is at one point six percent. And to hear live breaking news over your Bloomberg types, squawk on your terminal, ascue you a w K. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael, Karen, thank you very much. The January six Panel holds another public hearing today.

It is expected to explore whether extremist groups worked in coordination with the White House allies and an attempt to overthrow the result of the presidential election through a political coup and the mobilization of an armed, violent mob. President Biden is set to meet with Mexico's president at the White House today Later. President Biden is looking for cheaper oil prices on his Middle East trip this week, which will include a stop in Saudi Arabia. In baseball, the

Mets won, the Red Sox, A's and Giants lost. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven under journalist an analysts more than twenty countries. I'm Michael Varen. This is Bloomberg, Karon alright, Macha of our Thank you sixty nine on Wall Street. We turned to news and science and technology now with the Bloomberg and j I T.

Stemm report. Ronzi U buy New Jersey Institute of Technology ranked a top fifty national public university by US News and World Report and number fourteen in the nation on Money's Best Colleges List. Learned more at n j I T dot Edu and here's what's making news and science, technology, engineering, and math. In Shanghai, there are fears the city is headed back into lockdown. A little more than five weeks after exiting a two month or deal, the city reported

fifty nine new coronavirus cases on Monday. That's the fourth day in a row that case numbers have been above fifty. The detection of a new sub strain of the omicron variant triggered two more rounds of mass testing in Shanghai. It's the first time human beings have seen a distant galaxy cluster, as it appeared more than four billion years ago in such a vivid detail. President Biden unveiled one of the first full color images from the James Wood

Space Telescope. The telescope was sent into orbit roughly a million miles from Earth late last year, and Amazon kicking off its annual Prime Day sales event. The company has long used the two day event allure people to its Prime membership, for which Amazon recently raised the price to a hundred thirty nine dollars a year from a hundred nineteen dollars a year. Amazon does not disclose total Prime

Day sales. The growth estimates for last year's event had ranged from seven to nine percent, And as the Bloomberg and j I. K Stem report Nathan Okay, Karen, thank you. We are live from the Bloomberg Interactive Broker Studios, where

it's six fifty on Wall Street. Time to how to check what's going on in d C. Where some of the top stories include the White House warning tomorrow's inflation data will be highly elevated, the January six Committee focusing on what Trump knew about extremist groups, and the President to talk migration and security with his counterpart from Mexico. Let's bring back Joe. Matthew Bloomberg, Washington Correspondent host of

sound on here on Bloomberg Radio, Joe. As we mentioned, the White House is trying to get ahead of tomorrow's CPI data, but that begs the question, what is the White House doing to get ahead of inflation? Well, at this point, uh, it's it's all about messaging, because the White House has really tried to swing at the ball as many times as it can and just hasn't really been able to get to this issue. That's why they remind us Nathan every day that this is a global phenomenon.

They say, in fact, inflation is even worse in other countries. But of course this is an issue, a major problem for Democrats and for President Biden. As we get closer to November, they're saying that the CPI will be highly elevated tomorrow. They're just trying to take the sting out of this. And they did the same thing a month ago, saying that look, it's not gonna look good, it's not gonna be pretty that headline number, but take a look

at that core number. And then they tell us it's already out of date anyway, because of course all economic data is backward looking. But that is the point here. Pay no attention to the man behind the curtain, the next report might be better. Well, you mentioned that the White House has taken a lot of swings at this. We've heard talk about a potential cap on Russian oil prices, looking to potentially take action on Chinese tariffs, the economic

package that's under discussion in the Senate. UH, what of any of these have any chances of moving forward well or or having an impact? And on Thursday, Jake Sullivan, UH, we'll be talking as well about efforts that have been taken a since the National Security Advisory, efforts that have been taken UH to UH to increase competition, smooth out the supply chain. This is a conversation that's been going

on since way before the war in Ukraine. This is something that comes from UH, from COVID, of course, and from the heating of the economy based on the stimulus that that was past coming out of the pandemic. It's very difficult to to to try to get your arms around this as a political agency here in the sense that that that we're talking about the White House or Congress for that matter. The markets are likely to handle this, and that is why President Biden is had it in part,

at least for the Middle East. When he sits down with oil producers in Saudi Arabia on Friday, he's gonna be asking them to start pumping more. The question is would it actually have an impact on prices because our refining capacity is close to maxed out. Well, that is the big question, isn't it, Joe, Because we've also heard from the White House that at least it thinks that

Saudi Arabia has more room to produce. So what what's the message the President Biden is gonna be sending here the Saudias and and uh the U A Eh they together have about three million barrels of spare capacity, if I can use that term. That's according to their data. There are skeptics, by the way, including the CEO of Shell, who said, just a couple of weeks ago, you know, this is not what a lot of people think. There's not as much oil available as some people might suspect.

The fact is, though, even if President Biden scores a deal here with Saudias, with with the the U A E or just OPEC as a whole, we have to remember a couple of things. Number One, they have been increasing production in fact, but Saudi has agreed to as almost a gesture to the Biden administration to increase production and get us back to where we were pre COVID that that has happened. And even if we add to that,

the question again is what happens to gasoline? Crude oil is one thing, but we can't refine a lot more crude into gas unless they start taking refineries off of mothballs, Nathan. And there's no indication that's about to happen. Yeah, it certainly doesn't seem to be the case anytime soon. Let's turn to what's happening. Joe on Capitol Hill today another January six, committing hearing, and I'm guessing the words will be wild could come up of it. That's that's right.

That the infamous tweet from then President Trump, and and who responded to that tweet, what led up to it, who responded to it. There was a meeting in the White House that we know about with Michael Flynn, with Rudy Giuliani and Sydney Powell, in which they talked about seizing voting machines. Right, They talked about the potential for invoking marsh a law, and it was shortly after that

meeting that President Trump sent that tweet. Did the Proud Boys and the Oath Keepers, those two militant groups groups simply read Twitter and and show up? Or was there a more concerted effort here to get them into town. Did Michael Flynn or Rudy Giuliani or some of these advisers to the president reach out to those groups. That's the type of conversion that Jamie Raskin, the congressman on that panel, has been talking about in today. They attempt

to connect the dots. It's unclear exactly though, exactly where those dots are gonna fall. One of the former spokespeople, if I could use, uh that term for the oath Keepers, is going to be testifying about this very thing today. Interesting. That'll be one to watch for sure. In our last minute here, Joe, before the President heads to the Middle East, he's gonna be meeting with Mexican President Lopez Obrador. What's

on the agenda there? Uh, you can probably guess. It's gonna have a lot to do with the border and coming just just well, just I guess. About a week after the Supreme Court issued it's ruling on the remain in Mexico policy. It's it's important for these two leaders to get in the same room together. Uh. And it's it's interesting that he's gonna be in town today and even beyond the President leaving tonight on his trip to the Middle East. But they're gonna announce, uh, some joint

actions to improve infrastructure and cooperation along the border. Migration and expanding legal migration will be issue number one, according to the White House Immigration January six. Inflation lots to get to I think controversial here, No, not at all.

With a sound on with Joe Matthew every weekday five pm Wall Street Time right here on Bloomberg Radio, of course, our Washington correspondent, Joe as always, thanks for the update ahead of all that, and you can read much more on all these stories Bloomberg dot Com or on the Bloomberg terminal. Listen to Bloomberg Radio in Washington Bloomberg and

one oh five point seven FM HD two. Looking ahead to the market open, it is risk off this morning, and the two and ten year inversion briefly reached ten basis points. Right now, the two year yield is just shy of three point zero one percent. The yield on the two year right now two point nine one percent. SMP futures are down twenty eight point, Style futures down two D fifty seven. NASZAC futures lower by fifty six points.

The crude oil situation is sell off continues. Nymex crude now below a hundred dollars of barrel, down four and a half percent at N thirty three. Brent is at one oh two forty five. That is a drop of four point three five percent. The euro briefly reached parody against the dollar. Right now, it's trading at one point zero zero to three. Bloomberg Surveillance next for Karen Moscow. I'm Nathan Hagar. This is Bloomberg